"This fuel cell power pack, which we developed for use with the Itronix GoBook(TM) funded by the Air Force, demonstrates the breadth of our technology to deliver much greater power - more than six times the watts - than oour disposable power pack for cell phones and other portable devices," said Robert K. Lifton, Chairman and CEO of Medis Technologies. "It also demonstrates our ability to produce a refuelable fuel cell using a refueling cartridge as compared with our disposable product.

I should note, too, that we were pleased with the announcement by General Dynamics of its agreement to acquire Itronix, since that provides us with the opportunity to work even more closely with General Dynamics C4 Systems on tablets and other portable devices developed by Itronix for the military and industrial markets they intend to access.

During August our marketing team has met with U.S. and U.K. mobile operators and OEMs demonstrating the new iteration of our disposable commercial Power Pack, and meetings are scheduled to continue in the U.S. and Europe well into September. The responses from those meetings held thus far, have reinforced my personal conviction that this product will have considerable acceptance in the market place. While this latest iteration of the disposable power pack already is small enough to fit into a shirt pocket, we expect that the final version will be even smaller and offer more attractive design features (see the design contest information at www.medistechnologies.com). The final version is scheduled for delivery to our potential customers for their laboratory testing during the next quarter. We continue on plan to have the semi-automated line capable of producing 10,000 to 20,000 Power Packs per month up at the end of this year with customer deliveries expected in the first quarter of 2006. We are also on schedule for placing the order for the automated line capable of 1.5 million units a month in the next few weeks.

As previously announced, we already have orders from one distributor, ASE International, for 200,000 Power Packs a month for the first year of production from the planned automated line which represents fifteen percent of that line's expected production capacity, and our target is to have the entire line capacity sold out before construction of the line is completed so that we can start on a second automated line as soon as possible."

Medis will be presenting at three upcoming investor conferences in September where the Company plans to demonstrate its commercial Power Pack charging a broad number of devices, including cell phones, smart phones, PDA's and electronic games. These conferences are: The Roth Capital Partners New York Conference in New York City on September 7th; the ThinkEquity Partners 3rd Annual Growth Conference in San Francisco on September 14th; and the Merriman Curhan Ford & Co. Investor Summit in San Francisco on September 19th.

Medis Technologies' primary focus is on direct liquid fuel cell technology. Its business strategy is to sell its products to end users through retail outlets and service providers. Medis has also developed the CellScan with many potential applications relating to disease diagnostics and chemo sensitivity. Additionally, Medis' product pipeline includes other technologies, in varying stages of development.

This press release may contain forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risk and uncertainties, including, but not limited to, the successful completion of product development, the success of product tests, commercialization risks, availability of financing and results of financing efforts. Further information regarding these and other risks is described from time to time in the Company's filings with the SEC.